Section 54F for under construction property with reinvestment of proceeds.
Hello good people of reddit. Looking for an answer to a query I have around optimizing taxes related to section 54F.
I am in the process of purchasing a house from a builder under a construction linked plan. The RERA timeline for delivery is 2029 but based on previous builder projects, I believe I should get possession within 2.5 years. I have my company stocks which are all long term and I want to sell them for a tax exemption under Section 54F.
I have also applied for a loan and am in the process of getting that sanctioned. I want to reinvest the sale proceeds from the sold stocks in same stocks or other funds since the rate of interest of home loan is low currently.
The bare act doesn't state anything around using the same money received and I am getting conflicted information on the internet when I go through the case laws around this. Wanted to know if any CAs or the people here have experience with such a scenario, and what it was.
Posted Oct 6, 2025, 7:04 PM UTC